Schroders has revealed the introduction of Carbon Offset share classes, offering clients the option to offset the carbon emissions associated with their investments in underlying funds.
These new share classes will be incorporated into the Schroder International Selection Fund (SISF) Global Climate Leaders, which focuses on investing in companies demonstrating leadership in addressing climate change. The fund is managed by Simon Webber and Isabella Hervey-Bathurst.
Schroders’ objective is to ensure that the offsets purchased correspond to the Scope 1 and 2 emissions of the portfolio companies attributable to the specific share class. For instance, if the share class holds a 1% stake in a company, Schroders will calculate 1/100th of that company’s Scope 1 and 2 carbon emissions. By aggregating the equivalent exposures to carbon emissions across all holdings, an estimate of the total carbon emissions associated with the share class can be determined.
All offsets are tied to high-quality offset projects, and detailed information about each project will be made available to investors through Schroders’ website. The offset costs will be fully transparent to investors, ensuring complete visibility into the expenses incurred.